SHIPPING consolidation continues apace with French shipping giant CMA CGM announcing it is to acquire Finland-based logistics company Containerships.
The announcement follows the signing of an agreement between CMA CGM and Containerships' parent company, Container Finance Ltd. Under the deal, the French shipping liner will also acquire Container Finance's holdings in Multi-Link Terminals Ltd and CD Holding Ltd.
Containerships is a full-service, door-to-door provider of short sea shipping and logistics solutions, providing cargo transport between Finland, Russia, the Baltic States, continental Europe, the United Kingdom and Ireland, as well as in the Mediterranean region between Turkey and Africa.
Financial terms of the deal were not disclosed, and the transaction remains subject to approval by relevant authorities. However, Containerships said the estimated closing is between three and six months, reports American Shipper.
Upon closing, Container Finance's entire container logistics operations will be integrated with CMA CGM's intra-regional market offering in Europe and the Mediterranean, but the combination will not affect the rights of Containerships bond holders, Containerships said.
In 2017, Containerships posted a net profit of EUR200,000 (US$231,427), an improvement from a EUR1.4 million net loss in 2016, while consolidated net sales in 2017 clocked in at EUR226.7 million, up from EUR197.9 million the prior year.
Containerships said it continues to develop routes and services and that between August 2018 and July 2019, it's slated to launch four LNG fueled vessels.
According to Containerships' website, the company currently has a fleet of 15 vessels, ranging in size from 298 TEU to 1,129 TEU.
CMA CGM said the acquisition of Containerships will further strengthen the development strategy implemented by CMA CGM Group chairman and CEO Rodolphe Saade that's aimed at densifying the group's regional network.
The announcement follows the signing of an agreement between CMA CGM and Containerships' parent company, Container Finance Ltd. Under the deal, the French shipping liner will also acquire Container Finance's holdings in Multi-Link Terminals Ltd and CD Holding Ltd.
Containerships is a full-service, door-to-door provider of short sea shipping and logistics solutions, providing cargo transport between Finland, Russia, the Baltic States, continental Europe, the United Kingdom and Ireland, as well as in the Mediterranean region between Turkey and Africa.
Financial terms of the deal were not disclosed, and the transaction remains subject to approval by relevant authorities. However, Containerships said the estimated closing is between three and six months, reports American Shipper.
Upon closing, Container Finance's entire container logistics operations will be integrated with CMA CGM's intra-regional market offering in Europe and the Mediterranean, but the combination will not affect the rights of Containerships bond holders, Containerships said.
In 2017, Containerships posted a net profit of EUR200,000 (US$231,427), an improvement from a EUR1.4 million net loss in 2016, while consolidated net sales in 2017 clocked in at EUR226.7 million, up from EUR197.9 million the prior year.
Containerships said it continues to develop routes and services and that between August 2018 and July 2019, it's slated to launch four LNG fueled vessels.
According to Containerships' website, the company currently has a fleet of 15 vessels, ranging in size from 298 TEU to 1,129 TEU.
CMA CGM said the acquisition of Containerships will further strengthen the development strategy implemented by CMA CGM Group chairman and CEO Rodolphe Saade that's aimed at densifying the group's regional network.